South East ResearchAll the latest research from the South East of England
Take-up in the M25 market surpassed 1 million sq ft for only the second time in 18 months.
“A gradual improvement in economic conditions, together with a pickup in air freight activity at Heathrow, should support stronger occupier demand for industrial and distribution floorspace in this market going forward.
Total M25 availability fell for the second successive quarter to stand at its lowest level for 12 months.
The M4 and wider Thames Valley is leading the recovery in the South East market. In the M4, Q1 2011 take-up marginally exceeded the ten year quarterly average while, in the M25, it was 30% below average.
Sentiment improved across the Thames Valley during the third quarter of 2010 and quarterly take up was one of the highest on record owing to key transactions completing.
By the end of 2012, the total office take up in the M27 area is expected to fall short of last year’s figures, according to a report by BNP Paribas Real Estate.
Following robust take-up in the second half of 2011, Q1 take-up was relatively subdued in the M25 and the M4, at 25% and 33% respectively below the 10-year quarterly average.
The Thames Valley experienced a strong start to 2011, laying the foundations for a steady year. The quarter saw a number of milestones achieved.
A survey of industrial property transactions in the Blackwater Valley towns, undertaken by Wadham & Isherwood, reveals that a total of 232,886 sq ft (21,635sq m) of industrial property of over 1,000 sq ft (92 sq m) was let or sold between April 2009 and September 2010.
After a long period of caution, corporate confidence appears to be returning to the Thames Valley.